Exhibit 12(a)
J. C. Penney Company, Inc.
and Consolidated Subsidiaries
Computation of Ratios of Available Income to Combined Fixed Charges
and Preferred Stock Dividend Requirement
52 Weeks 52 Weeks 52 Weeks 52 Weeks 52 Weeks
Ended Ended Ended Ended Ended
($ in Millions) 01/25/03 01/26/02 01/27/01 01/29/00 01/30/99
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Income/(loss) from continuing operations $ 557 $ 172 $ (920) $ 237 $ 674
(before income taxes, before
capitalized interest, but after
preferred stock dividend)
Fixed charges
Interest (including capitalized
interest) on:
Operating leases 349 305 320 272 225
Short-term debt 4 -- 13 137 106
Long-term debt 403 426 464 538 557
Capital leases 4 5 3 2 4
Other, net 19 8 2 (5) 1
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Total fixed charges 779 744 802 944 893
Preferred stock dividend, before taxes 27 29 33 36 37
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Combined fixed charges and preferred
stock dividend requirement 806 773 835 980 930
Total available income/(loss) $ 1,363 $ 945 $ (85) $ 1,217 $ 1,604
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Ratio of available income to combined
fixed charges and preferred stock
dividend requirement 1.7 1.2 -0.1 * 1.2 1.7
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* Income from continuing operations (before income taxes and capitalized interest, but after preferred stock dividend) was not
sufficient to cover combined fixed charges and preferred stock by $920 million.